Scenario I

Basic Trust Fund Accounting

I - 1 June 2001

Scenario I includes transactions and reports illustrating basic accounting for receipts and collections, 

expenditure transfers, nonexpenditure transfers, and exchange/nonexchange transactions. FASAB’s 

SFFAS #7, Accounting for Revenue and Other Financing Sources, prescribes the majority of proprietary 

accounting contained in this scenario. (Refer to Scenario IV, Trust Fund Investments, for discussion on 

investment transactions.)

A basic concept of trust fund accounting is that trust funds do not use USSGL accounts 3100 

Unexpended Appropriations or 5700 Expended Appropriations (refer to SFFAS #7, paragraph 213). At 

least two justifications support this concept. 

First, trust funds do not receive Treasury appropriation warrants, for which Fiscal Service Form 6200: 

Appropriation Warrant is issued from the General Fund of Treasury as a result of an appropriation act. 

USSGL account 3100 Unexpended Appropriations generally is associated with these types of warrants. 

Instead, the source of most trust fund inflows includes receipts and collections that are either deposited 

directly into trust funds or first collected by a custodial entity.

Second, trust fund receipts predominantly consist of tax receipts (e.g., social security taxes, railroad 

retirement taxes, and excise taxes), as well as customs duties, fines, penalties, etc. Collecting entities 

such as the Internal Revenue Service and the U.S. Customs Service collect these receipts and deposit 

them into Treasury general fund receipt accounts.

SFFAS #7 states that dedicated tax receipts, as well as amounts transferred-in from collecting entities, 

should be recorded as revenue, not as part of unexpended appropriations (USSGL 3100). Furthermore, 

to account for these receipts as revenue and as unexpended appropriations in the same trust fund account 

would double-count the amounts as financing sources.1

 Therefore, all USSGL trust fund guidance (i.e., 

guidance contained within this Guide) reflects that USSGL account 3100 Unexpended Appropriations 

and corresponding account 5700 Expended Appropriations are not recorded by trust fund appropriation 

fund symbols.

USSGL transfer accounts are split between nonexpenditure and expenditure transfers. This is because 

Treasury and OMB guidance prescribes different reporting requirements for each type of transfer.2

 

The four proprietary USSGL accounts established to account for trust fund transfers are as follows:3

5750 Expenditure Financing Sources – Transfers-In

5755 Non-expenditure Financing Sources – Transfers-In

5760 Expenditure Financing Sources – Transfers-Out

5765 Non-expenditure Financing Sources – Transfers-Out

For trust fund transfers, the appropriate action would be to either debit or credit the appropriate transfer 

account, rather than record USSGL accounts 3100 and/or 5700. Nonexpenditure USSGL accounts 5755 

 1 SFFAS #7 - Accounting for Revenue and Other Financing Sources, paragraphs 60 and 213 2 TFM Vol. I Part 2 - Chapter 2000; OMB Circular A-34 Sections 12.10 and 12.11 (dated November 3, 2000) 3 For USSGL account definitions, refer to Section II, Accounts and Definitions, of TFM S2-01-02 (as updated).
Scenario I

Basic Trust Fund Accounting

I - 2 June 2001

and 5765 capture all trust-to-trust transfers, which, by definition, are nonexpenditure.4 This is 

accomplished via an SF 1151 form. All nonexpenditure transactions are recorded the same on the 

proprietary side, but crosswalk differently to the various budgetary reports. The USSGL accounts 

recorded in the budgetary transactions for nonexpenditure transfers vary depending on whether the 

transfer is an appropriation transfer or an allocation transfer.5

Expenditure USSGL accounts 5750 and 5760 capture transfers between trust funds and Federal funds 

(such as an agency’s general fund). This, by definition, is an expenditure transaction.6 However, these 

transfer accounts are recorded only if the transfer results from a nonexchange transaction, such as a law 

requiring the transfer. If the transaction is exchange in nature, then record a revenue or an expense 

account. On the budgetary side for expenditure transfers, the entity transferring-out must record an 

outlay, and the entity transferring-in must record a receipt or an appropriation.

Other USSGL accounts were established to accommodate transfers between trust funds and Federal 

funds. They provide the mechanism to transfer financing sources where the funds remain invested for 

transfer at a later date. The proprietary USSGL accounts established for this purpose include:

1335 Expenditure Transfers Receivable

2155 Expenditure Transfers Payable

On the budgetary side, the following USSGL account was established:

4114 Appropriated Trust or Special Fund Receipts

Trust funds are to use USSGL account 4114 for appropriated receipts in the same way that Federal funds 

(with the exception of special funds) are to use USSGL budgetary account 4119 Other Appropriations 

Realized for appropriations received. USSGL account 4119 is not appropriate for trust funds to record 

for several reasons. First, it generally correlates with USSGL proprietary account 3100, which trust 

funds do not record. Additionally, USSGL account 4119 usually is associated with the receipt of an 

appropriation warrant, which trust funds do not receive. Therefore, trust funds should use USSGL 

account 4114 for all appropriated trust fund receipts, not USSGL account 4119.

The term “appropriated” is used in the USSGL account title because, although trust funds do not receive 

actual appropriation warrants, amounts are appropriated from various sources. These sources include 

appropriations from a general fund receipt account to a trust fund receipt account (via Fiscal Service

Optional Form 1017-G: Journal Voucher); from an agency’s general fund to the agency’s trust fund (via 

expenditure transfer, e.g., OPAC); and from a trust fund receipt account to a trust fund expenditure 

account. Therefore, USSGL account 4114 is used to record all trust fund receipts, and is counted as new 

budget authority on the SF 133.

 4 TFM Vol. I Part 2 - Chapter 2000 5 Refer to TFM Vol. I Part 2 - Chapter 2000 for the distinction between the different types of nonexpenditure transfers. 6 TFM Vol. I Part 2 - Chapter 2000; OMB Circular A-34 Section 12.11 (dated November 3, 2000)
Scenario I

Basic Trust Fund Accounting

I - 3 June 2001

1. To record receipts deposited into a trust fund receipt account, which are automatically 

credited to the corresponding trust fund expenditure account.7 (Collections of tax receipts 

from the public are initially deposited into a Treasury General Fund Receipt Account (i.e. 

0152 Excise Taxes) and recorded as custodial revenue by the collecting entity (i.e. IRS). 

From there the receipts are appropriated to the trust fund receipt account (via Fiscal 

Service Optional Form 1017-G: Journal Voucher). Note that Fiscal Service Form 6200: 

Appropriation Warrant is not processed.) (TC A186)

Budgetary

4114 Appropriated Trust or Special Fund Receipts 50,000

4450 Unapportioned Authority8 50,000

Proprietary

1010 Fund Balance With Treasury 50,000

5800 Tax Revenue Collected 50,000

2. To record the budgetary authority apportioned by OMB. (TC A116)

Budgetary

4450 Unapportioned Authority 30,000

4510 Apportionments 30,000

Proprietary

None

3. To record the allotment of authority. (TC A120)

Budgetary

4510 Apportionments 20,000

4610 Allotments – Realized Resources 20,000

Proprietary

None

 7 The transactions in this scenario combine the activity of the receipt and expenditure accounts. The receipt-expenditure 

account relationship is described in more detail in the Introduction of the Guide. 8 This scenario assumes that the entire trust fund is subject to apportionment. For trust fund activity that is not subject to

apportionment, credit USSGL account 4620 - Unobligated Funds Not Subject to Apportionment.
Scenario I

Basic Trust Fund Accounting

I - 4 June 2001

4. To record current-year unexpended obligations. (TC B204)

Budgetary

4610 Allotments – Realized Resources 15,000

4801 Undelivered Orders - Obligations, Unpaid 15,000

Proprietary

(None)

5. To record a payable to non-Federal recipients for expenses incurred. (TC B302)

Budgetary

4801 Undelivered Orders - Obligations, Unpaid 15,000

4901 Delivered Orders - Obligations, Unpaid 15,000

Proprietary

6100 Operating Expenses/Program Costs 15,000

2110 Accounts Payable 15,000

6. To record a non-expenditure allocation9 transfer-out of non-invested balances from the 

parent account to another agency’s trust fund recipient allocation expenditure account.10 

All trust-to-trust transfers are accomplished via an SF 1151: Nonexpenditure Transfer 

Authorization. (TC A214)

Budgetary

4510 Apportionments 10,000

4175 Allocation Transfers of Current-Year Authority for

Non-Invested Accounts 10,000

Proprietary

5765 Nonexpenditure Financing Sources – Transfers-Out 10,000

1010 Fund Balance With Treasury 10,000

 9 Allocation transfers are posted to the same proprietary USSGL accounts as appropriation transfers, but different budgetary 

USSGL accounts are used (see transaction 8).

10 Refer to Scenario V, Treasury-Managed Trust Fund Allocation Accounts, for allocation transfers of invested balances, as 

well as TFM S2-01-02 (as updated) for comprehensive allocation transfer transactions.
Scenario I

Basic Trust Fund Accounting

I - 5 June 2001

7. To record payment and expenditure of amounts recorded in transaction 5. This will 

be reflected on the SF 224: Statement of Transactions. (TC B110)

Budgetary

4901 Delivered Orders - Obligations, Unpaid 15,000

4902 Delivered Orders - Obligations, Paid 15,000

Proprietary

2110 Accounts Payable 15,000

1010 Fund Balance With Treasury 15,000

8. To record a non-expenditure appropriation transfer-in from another agency’s trust fund 

expenditure account. All trust-to-trust transfers are accomplished via an SF 1151: 

Nonexpenditure Transfer Authorization. (TC A250)

Budgetary

4170 Transfers – Current-Year Authority 7,000

4450 Unapportioned Authority 7,000

Proprietary

1010 Fund Balance With Treasury 7,000

5755 Nonexpenditure Financing Sources – Transfers-In 7,000

9. To record penalties collected from Federal sources. Receipts are deposited into a trust 

fund receipt account and automatically credited to the corresponding trust fund 

expenditure account. (TC A186)

Budgetary

4114 Appropriated Trust or Special Fund Receipts 25,000

4450 Unapportioned Authority 25,000

Proprietary

1010 Fund Balance With Treasury 25,000

5320 Penalties, Fines and Administrative Fees Revenue 25,000
Scenario I

Basic Trust Fund Accounting

I - 6 June 2001

10. To record expenditure transfers-in of $5,000 for services provided to other Federal 

agencies (exchange transaction, not subject to the Economy Act) and $12,000 for amounts 

appropriated by law (nonexchange transaction). Both are transferred-in from other 

TAFSs. Report expenditure transfers on the SF 224: Statement of Transactions.11 (TC 

A264)

Budgetary

4114 Appropriated Trust or Special Fund Receipts 17,000

4450 Unapportioned Authority 17,000

Proprietary

1010 Fund Balance With Treasury 17,000

5200 Revenue from Services Provided 5,000

5750 Expenditure Financing Sources – Transfers-In 12,000

11. To record expenditure transfers-out of $2,000 for expenses incurred to run a program 

(exchange transaction) and $1,000 for amounts transferred by law (nonexchange 

transaction). Report expenditure transfers on the SF 224: Statement of Transactions. (TC 

A116, A120, A266)

Budgetary

4450 Unapportioned Authority12 3,000

4902 Delivered Orders - Obligations, Paid 3,000

Proprietary

5760 Expenditure Financing Sources – Transfers-Out 1,000

6100 Operating Expenses/Program Costs 2,000

1010 Fund Balance With Treasury 3,000

12. To record a payable for a nonexchange expenditure transfer-out to the agency's general 

fund. (TC A116, A259)

Budgetary

4450 Unapportioned Authority13 4,000

4901 Delivered Orders - Obligations, Unpaid 4,000

Proprietary

5760 Expenditure Financing Sources – Transfers-Out 4,000

2155 Expenditure Transfers Payable 4,000

 11 Typically, expenditure transfers-in that do not fall under the Economy Act are recorded into trust fund receipt accounts. 

The receipts are then automatically credited to the corresponding trust fund expenditure account (for trust funds designated in 

Treasury's FAST book as available).

12 The USSGL entries for budgetary fund control and obligations for trust funds are the same as those published in TFM S2-

01-02 (as updated). For purposes of illustration, only the final results are shown here.

13 Same as footnote 7.
Scenario I

Basic Trust Fund Accounting

I - 7 June 2001

13. To record the actual nonexchange expenditure transfer-out from transaction #12 via 

OPAC. The SF 224: Statement of Transactions will reflect this transaction. (TC A261)

Budgetary

4901 Delivered Orders - Obligations, Unpaid 4,000

4902 Delivered Orders - Obligations, Paid 4,000

Proprietary

2155 Expenditure Transfers Payable 4,000

1010 Fund Balance With Treasury 4,000
Scenario I

Basic Trust Fund Accounting

I - 8 June 2001

Budgetary Pre-Closing Adjusted Trial Balance (FACTS II ATB):

4114 92,000

4170 7,000

4175 10,000

4450 62,000

4610 5,000

4902 22,000

99,000 99,000

Budgetary Closing Entries:

C1. To record the consolidation of actual net-funded resources. (TC F204)

4175 Allocation Transfers of Current-Year Authority for

Non-Invested Accounts 10,000

4201 Total Actual Resources - Collected 89,000

4114 Appropriated Trust or Special Fund Receipts 92,000

4170 Transfers – Current-Year Authority 7,000

C2. To record the closing of unobligated balances to unapportioned authority. (TC F210)

4610 Allotments – Realized Resources 5,000

4450 Unapportioned Authority 5,000

C3. To record the closing of Expended Authority - Paid. (TC F214)

4902 Delivered Orders - Obligations, Paid 22,000

4201 Total Actual Resources - Collected 22,000

Budgetary Post-Closing Trial Balance:

4201 67,000

4450 67,000

67,000 67,000
Scenario I

Basic Trust Fund Accounting

I - 9 June 2001

Proprietary Pre-Closing Trial Balance (FACTS I Trial Balance):

1010 67,000

5200 5,000

5320 25,000

5750 19,000

5755 7,000

5760 5,000

5765 10,000

5800 50,000

6100 17,000

99,000 99,000

Proprietary Closing Entries:

C1. To record the closing of revenues and expenses to cumulative results of operations. (TC 

F228)

5200 Revenue from Services Provided 5,000

5320 Penalties, Fines and Administrative Fees Revenue 25,000

5750 Expenditure Financing Sources – Transfers-In 12,000

5755 Nonexpenditure Financing Sources – Transfers-In 7,000

5800 Tax Revenue Collected 50,000

3310 Cumulative Results of Operations 67,000

5760 Expenditure Financing Sources – Transfers-Out 5,000

5765 Nonexpenditure Financing Sources – Transfers-Out 10,000

6100 Operating Expenses/Program Costs 17,000

Proprietary Post-Closing Trial Balance:

1010 67,000

3310 67,000

67,000 67,000
Scenario I

Basic Trust Fund Accounting

I - 10 June 2001

SF 133: Report on Budget Execution and Budgetary Resources (Quarter 4):

1. Budget Authority

A. Appropriations (4114E) 92,000

D. Net Transfers, Current Year Authority Realized (Net 4170E, 4175E) (3,000) 

2. Unobligated Balance Brought Forward

3. Spending Authority from Offsetting Collections (gross)

4. Recoveries of Prior Year Obligations

5. Temporarily Not Available Pursuant to Public Law

6. Permanently Not Available

7. Total Budgetary Resources 89,000

8. Obligations Incurred (4902E) 22,000

9. Unobligated Balance (available) (4610E) 5,000

10. Unobligated Balance Not Available (4450E) 62,000

11. Total, Status of Budgetary Resources 89,000

12. Obligated Balance, Net as of October 1

13. Obligated Balance Transferred, Net

14. Obligated Balance, Net, End of Period

15. Outlays

A. Disbursements (4902E) 22,000

B. Collections

USSGL 2108: Year-end Closing Statement:

Column 5 Post-Closing Unexpended Balance (1010E) 67,000

Column 11 Unobligated Balance (4450E, 4610E) 67,000
Scenario I

Basic Trust Fund Accounting

I - 11 June 2001

Program and Financing Schedule (P&F)14:

Obligations by Program Activity

1000 Total new obligations (4902E) 22,000

Budgetary Resources Available for Obligation

2140 Unobligated balance available, start of year 0

2200 New budget authority(gross) (sum 4000 to 6990) 99,000

2395 Total new obligations (-) (from line 1000) 22,000

2499 Unobligated balance carried forward, end of year (4450E, 4610E of parent

and recipient) 77,000

New Budgetary Authority (Gross), Detail

4026 Appropriation (trust fund, definite) (4114E) 92,000

4100 Transferred to other accounts (4175E-parent) (10,000)

4200 Transferred from other accounts (4170E, 4175E-recipient) 17,000

7000 Total new budget authority (gross) (4114E, 4170E, 4175E) 99,000

Memorandum Entries

9201 Total investments, start of year (par) (1610B) 0

9202 Total investments, end of year (par) (1610E) 0

 14 Per OMB Circular A-11, Section 82.15 (dated July 19, 2000), P&F data for allocation receiving accounts must be 

combined with the parent account. For example, as illustrated above, USSGL account 4175 is reported on lines 4100 and 

4200; however, since this P&F data is combined with the recipient account, USSGL account 4175 nets to zero on line 7000 

(total).
Scenario I

Basic Trust Fund Accounting

I - 12 June 2001

OMB Form and Content Statements 15

Balance Sheet

ASSETS

1A4 Fund Balance With Treasury (1010E) 67,000

LIABILITIES and NET POSITION

6B Cumulative Results of Operations (3310E) 67,000

Statement of Net Cost

1A1. Program Costs - Intragovernmental - Production (6100E) 2,000

1B1. Program Costs - Public - Production (6100E) 15,000

1C. Total Program Cost (calc) 17,000

1D. Less Earned Revenues (5200E) (5,000)

1E. Net Program Costs (calc) 12,000

2. Costs Not Assigned to Programs

3. Less Earned Revenues Not Attributable to Programs

4. Net Cost Of Operations 12,000

Statement of Changes in Net Position

1. Net Cost of Operations 12,000

2B. Taxes (and Other Nonexchange Revenue) (5320E, 5800E) 75,000 

2E. Transfers-in (5750E, 5755E) 19,000

2F. Transfers-out (5760E, 5765E) (15,000)

3. Net Results of Operations (calculation) 67,000 

9. Net Position-End of Period (calculation) 67,000

 15 When preparing consolidated statements, perform intra-agency elimination entries for expenditure and nonexpenditure 

transfers.
Scenario I

Basic Trust Fund Accounting

I - 13 June 2001

OMB Form and Content Statements (continued)

Statement of Budgetary Resources

1. Budget Authority 

A. Appropriations (4114E) 92,000

D. Net Transfers, Current Year Authority (4170E, 4175E) (3,000) 

5. Total Budgetary Resources 89,000

6. Obligations Incurred (4902E) 22,000

7A. Unobligated Balances Available - Apportioned (4610E) 5,000

8D. Unobligated Balances Not Yet Available - Other (4450E) 62,000

9. Total, Status of Budgetary Resources 89,000

10. Obligations Incurred (4902E) 22,000

15. Total Outlays

A. Disbursements (4902E) 22,000

B. Collections

Statement of Financing

1A. Obligations Incurred (4902E) 22,000

1H. Less: Trust or Special Fund Receipts Related to Exchange Revenue

in the Entity’s Budget (5200E) (5,000)

1J. Total Obligations as Adjusted and Nonbudgetary Resources 17,000

2. Resources That Do Not Fund Net Cost of Operations

2F. Adjustment for Trust Fund Outlays That Do Not Affect Net Cost (5760E) (5,000)

2H. Total Resources That Do Not Fund Net Costs of Operations (5,000)

3. Costs That Do Not Require Resources

4. Financing Sources Yet to be Provided

5. Net Cost of Operations 12,000